Malaysia’s central bank refines entry rules for digital insurers

Bank Negara Malaysia has refined entry requirements for digital insurers and Takaful operators (DITOs), introducing a foundational phase of three to seven years to assess viability and operational soundness. The revised framework allows DITOs a lower minimum paid-up capital during the initial phase, aligning with their early-stage business needs. Digital insurers are expected to introduce innovative products targeting underserved segments while complementing existing insurers and Takaful operators. The refinements follow stakeholder feedback and align with Malaysia’s Financial Sector Blueprint 2022-2026 to advance financial digitalisation. Bank Negara will issue licences to applicants demonstrating strong risk management and consumer protection measures. The application window runs from January 2, 2025, to December 31, 2026, with early submissions receiving positive responses, according to the central bank.